The Minister of Employment and Labour, after repealing the Employment Equity Regulations, 2014 in accordance with Section 55(1) of the Employment Equity Act, 1998, has finally announced, through the Department of Labour the recently gazetted Employment Equity Regulations, 2025 and the final sectoral numerical targets in line with the Employment Equity Act of 1998.

Aim & Achieve

It is a business’s priority to promote and extend Employment Equity beyond the HR department’s role, as it should be integrated into its operations.
This change aims to ensure representation of designated companies and reflect the country’s demographics across 18 industries and at all occupational levels, to prevent economic inequality as a vital measure of firm ownership.
The government has initiated a more disciplined compliance framework in its ongoing effort to secure accountability and establish workforce transformation through accurate gender, disabled, and racial representation.

Designated Employers and the Purpose of the 2025 EE Regulations

Over the next 5-year period, designated employers are steered away from autonomous goals to a regulatory framework, thereby driving the affirmative action agenda.
Designated employers are now referred to as companies that employ more than 50 employees. Their obligations must ensure the promotion of the affirmative action agenda, whilst adhering to the 5-year plan on the sectoral numerical targets, as it will be reported under the new General Administrative EE Regulations.
Designated employers are still expected to ensure an ongoing progress in accordance with the EAP (Economically Active Population) at Regional or National level when they conduct their workforce analysis and develop their EE Plans as outlined in Section 42 of the Employment Equity Act.
Designated employers are required to prepare and conduct an Employment Equity Plan (EE plan) of their workforce by setting annual numerical targets that stretch from 1 September 2025 to 31 August 2030 as outlined in Section 20 of the Act.

New Sectoral Targets Introduced

The Minister of Employment and Labour identified and published sectoral numerical targets across 18 sectors on the 15^th of April 2025.
These legally binding sectoral numerical targets establish minimum benchmarks which are driven by the equitable representation of suitable qualified people from designated groups (African, Coloured, and Indian people, Women, and People with Disabilities – includes intellectual and sensory limitations) at the top four occupational levels in the workforce.
Employers have the freedom to set their unique numerical targets within 1-4 years, provided these targets align with the Sectoral Target by year 5.
An employer operating in more than one sector must use the sectoral numerical targets of the economic sector where majority employees are located.

Responsibilities and obligations of designated employers in achieving Employment Equity in the workforce

Designated employers should conduct a workforce analysis and obtain all employees’ relevant information. Areas that undermine designated groups should be identified. The analysis should be recorded, and the employer should indicate if the National or Regional EAP was used for the analysis.
A new Employment Equity plan in accordance with the EE Regulations, 2025, should be carried out by all employers from 1 September 2025 – 31 August 2030. Existing plans are irrelevant.
Whilst preparing the EE plan, the designated employer must refer to the Codes of Good Practice issued through Section 54.
Preparation to submit an EE Report between 1 September 2025 – 15 January 2023 electronically or manually.
Additionally, an Income Differential Statement to the National Minimum Wage Commission requires manual or electronical submission in accordance with Section 27 of the EEA.
After the submission of the EE Report, a request for a compliance certificate must be provided if the employer pursues engaging in business with the State in terms of Section 53 of the EEA. The compliance certificate could only be issued if employers meet the targets or can justify non-compliance.
The DoEL should inform the designated employer by either rejecting the report, indicating errors made, or serving an acknowledgement letter of the successful completion of the report.

Consequences and penalties for non-compliance

Designated employers should avoid over-representation of any group exceeding the Economically Active Population in the relevant occupational level.
Failing to provide a reasonable justification for the deviation could result in a number of challenges within the Department of Employment and Labour.
This would lead to failing to secure the EE Compliance Certificate as it is required after submitting a compliant report
The EE Compliance Certificate is essential for conducting business with the state
Businesses could face the Labour Court or fines for failure to meet the required targets – the Department of Employment and Labour ensures accountability
A degree of leniency is extended and should be reported to the Director-General of the DoEL given there are 7 justifiable, reasonable grounds for failure to comply with the sector targets.

Conclusion

The Employment Equity Regulations, 2025 along with the finalised sectoral numerical targets instructs designated employers to actively promote employment equity and inclusion within their workforce. By adhering to sectoral numerical targets and engaging in comprehensive planning and reporting, organisations can help ensure that the representation of designated groups reflects the nation’s demographics. Compliance is essential not only for fostering equitable workplaces. Finally, these regulations aim to drive meaningful change and reduce economic inequality across South Africa’s workforce.